Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥81.80B
• Dividend Yield: 1.49%
• Average Volume (3M): 536.28K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.92
• Revenue Growth: -8.92%
• EPS Growth: 1.67%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 18.80
• Shares Outstanding: 58,695,000
• 10 Day Avg. Volume: 294,130
• 30 Day Avg. Volume: 536,283
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,050.00
• Price Target Upside: 232.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 67.6
• Revenue Forecast (FY): ¥41.10B

• Rating: 67 Neutral
• Price Target: ¥1,584.00 ▲(4.28% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by strong financial stability and solid profitability with low leverage, partially offset by weak cash-flow conversion and recent negative free cash flow. Technically, the trend is strong, but overbought signals raise near-term risk. Valuation is a headwind with a higher P/E and only a modest dividend yield.

Positive Factors

Conservative balance sheet

Extremely low leverage and a high equity ratio give the company durable financial flexibility. This reduces refinancing and solvency risk across cycles, supports capital spending or bidding on large contracts, and preserves credit access through downturns.

Sustainable profit margins

Healthy gross and net margins indicate consistent pricing power and project execution in the construction business. Sustained margins provide internal funding for maintenance capex and selective growth, cushioning returns against cyclical revenue swings.

Historically consistent revenue trajectory

A multi-year revenue growth trend (per the income summary) signals resilient demand for the company’s services. Durable top-line consistency supports long-term planning, stable backlog conversion and effective utilization of fixed resources.

Negative Factors

Weak cash conversion

Low operating cash conversion and a recent negative free cash flow imply limited ability to self-fund growth or distributions. Over months, weak cash generation constrains reinvestment, raises reliance on external funding, and increases vulnerability to working-capital shocks.

Moderate return on equity

A mid-single-digit ROE suggests the company earns only modest returns on shareholder capital despite low leverage. Over time this could limit equity investors' compounding and indicate room to improve project selection, capital allocation or operational leverage.

Recent revenue and EPS decline

Negative recent revenue and steep EPS contraction point to cyclical demand pressure or margin headwinds. Persisting declines over the coming months would strain cash flow, reduce pricing leverage and require operational adjustments to restore sustainable profitability.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the sale of cement and concrete products to the construction industry. Its key revenue streams include the production and distribution of ready-mixed concrete, precast concrete products, and other cement-based materials. The company benefits from long-term contracts with construction firms and government projects, ensuring a steady flow of income. Additionally, Nippon Hume has established partnerships with various stakeholders in the construction sector, allowing it to leverage collaborative projects that enhance its market presence. Factors contributing to its earnings include the demand for construction materials in urban development, infrastructure projects, and a focus on environmentally friendly practices that attract clients looking for sustainable solutions.

Nippon Hume Corp. Financial Statement Overview

Summary

Strong income statement trends with consistent revenue growth and solid profitability (net margin 8.22%). Balance sheet is very conservative (debt-to-equity 0.02; equity ratio 74.45%), reducing financial risk. Main weakness is cash generation: most recent free cash flow was negative and operating cash flow conversion is low (OCF/net income 0.29).

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1519.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Negative. The current price of 1519 is below the 20-day moving average (MA) of 1607.15, below the 50-day MA of 1555.11, and above the 200-day MA of 1455.45, indicating a neutral trend. The MACD of -14.86 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 5.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7949	77 Outperform	¥52.32B	17.62	―	3.74%	3.70%	12.26%
5273	75 Outperform	¥103.69B	9.99	―	1.92%	12.72%	28.48%
5262	67 Neutral	¥81.80B	26.12	―	1.49%	-8.92%	1.67%
7943	66 Neutral	¥125.31B	35.43	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥140.33B	11.06	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	50 Neutral	¥521.75B	54.78	1.44%	4.80%	0.68%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Makes Manac a Subsidiary in Strategic Concrete Pile Expansion

Nippon Hume Corporation has completed the acquisition of Manac Co., Ltd., a concrete pile manufacturer and pile-driving contractor based in Aichi Prefecture, making it a consolidated subsidiary as of February 27, 2026. Nippon Hume acquired 112,818 shares, securing 99.7% of Manac’s voting rights and installing a new management structure that aligns Manac’s leadership with Nippon Hume’s executive ranks.

The company expects the acquisition to have only an immaterial impact on its consolidated results for the fiscal year ending March 2026 but positions the deal as part of a broader medium- to long-term strategy. Nippon Hume plans to enhance corporate value by continuing M&A activity, investing in human capital and R&D, and pursuing capital expenditures that support a transition to a carbon-neutral economy, signaling ongoing consolidation and modernization in Japan’s construction materials industry.

The most recent analyst rating on (JP:5262) stock is a Buy with a Yen1708.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Confirms Audited Nine-Month Results Ahead of Equity Offering

Nippon Hume Corporation announced that an independent auditor has completed the quarterly review of its Japanese-language consolidated financial results for the nine months ended December 31, 2025, with no changes required to the figures released on February 6, 2026. The review was conducted in conjunction with a Board-approved disposal of treasury shares and a secondary share offering, supporting the integrity of disclosed financials as the company adjusts its capital structure and prepares for upcoming equity transactions.

For the period, Nippon Hume reported net sales of ¥27.6 billion, operating profit of ¥1.9 billion, and profit attributable to owners of parent of ¥2.7 billion, reflecting modest declines in sales and earnings year on year but an improvement in comprehensive income. The company’s equity ratio rose to 78.0% and net assets increased to ¥46.0 billion, while a two-for-one stock split effective January 1, 2026, was reflected in per-share metrics, signaling a shareholder-friendly capital policy despite softer earnings momentum.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume to Dispose Treasury Shares and Launch Secondary Offering for M&A and Growth Funding

Nippon Hume Corp. has approved the disposal of treasury shares and a secondary offering to raise capital primarily for future mergers and acquisitions and to bolster its financial base. The company plans to use M&A to strengthen its core foundation engineering and sewerage-related businesses, expand its precast products segment and forge alliances with leading firms inside and outside the industry.

Proceeds will also help cover funding needs following the acquisition of Manac Co., Ltd. and restore cash reserves affected by tighter legal and subcontracting regulations. Management expects growing demand from government-led national resilience initiatives and plans to deploy the new funds as working capital to support order growth, new project participation, capital investment and raw materials procurement while maintaining financial soundness.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Reshapes Top Management to Sharpen Infrastructure and Environmental Focus

Nippon Hume Corporation has approved a series of senior management changes effective April 1, 2026, including new roles for key directors overseeing business strategy across sewerage-related, environmental e-CON, foundations, precast, and military-related operations. The reshuffle also extends to executive officers, reallocating responsibilities in business administration, HR, marketing, and group-company secondments, signaling a realignment of its leadership structure to reinforce strategic focus across core infrastructure and environmental business lines.

Senior Managing Director Katsuhiko Inoue will consolidate oversight of business strategy management, including sewerage-related and environmental e-CON business strategy, while Director Hiroaki Sakurai assumes responsibility for military-related and foundations business strategy alongside marketing leadership in Kansai. Among executive officers, Sunao Kato will continue leading the Business Administration Division and Administration Department, while roles for Takanobu Watanabe and Hiroaki Tanabe are shifted to emphasize group governance, military-related business, and integrated precast and sewerage-environment marketing, potentially improving operational coordination and strategic execution.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Posts Lower Nine‑Month Earnings but Affirms Outlook and Ups Shareholder Returns

Nippon Hume reported consolidated results for the nine months ended 31 December 2025 showing a modest 3.7% decline in net sales to ¥27.6 billion, with operating profit down 7.6% and profit attributable to owners of parent falling 11% year on year, though comprehensive income rose and the equity ratio strengthened to 78%. Management left its full‑year forecast unchanged, projecting a recovery with net sales of ¥40 billion and higher operating and ordinary profit, and is combining this with enhanced shareholder returns via a two‑for‑one stock split effective 1 January 2026 and a higher annual dividend for FY2025–26, including commemorative and special components, signaling confidence in the company’s financial base and medium‑term earnings power.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume to Make Manac a Subsidiary to Strengthen Concrete Pile Business in Chubu Region

Nippon Hume Corporation has resolved to acquire shares of Manac Co., Ltd., a Chubu region specialist in manufacturing and installing concrete piles, and make it a subsidiary as part of its “23–27 Plan R” growth strategy. By integrating Manac’s strong regional customer base, production and installation network, and engineering resources, Nippon Hume aims to quickly expand its order intake and market share in the Chubu area, improve transport efficiency and lead times, and increase its ability to handle large‑scale foundation projects. The company expects the combination of both firms’ marketing, technological, manufacturing, and construction capabilities to enhance earnings power, build a more resilient revenue base less exposed to labor and equipment constraints, and strengthen its nationwide competitive position in the foundation business while supporting long‑term, sustainable growth.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.